Real Estate Investment 101: 9 Steps to Jumpstart Real Estate Investment
I can still remember, being a rookie in the field of real estate investment. One with nada experience in the real or business world. It was a bit overwhelming to get going. I can do a little that time and all the information that I learned was from the seminars, books, elders, and the school of hard knocks.
But drowning yourself with these isn’t always the answer, at least, at the onset. As you read more, you are surely becoming more aware of a lot of challenges and choices in store for you. Ironically speaking, knowing a lot can lead you to analysis paralysis.
Not that I have regrets, but if I were given a chance to start all over again, I would usually start from a methodical plan from an experienced real estate specialist. This approach will surely give me an idea to learn in phases while still moving forward. It will surely help me pay attention to the important and not on the not-so-important. By following these steps, I would surely save time and energy and stay away from a lot of frustrations. I should have also avoided being overwhelmed on all matters.
Easier said than done. I cannot deal with the past, but I can help you with your future. Here at www.rebykaylee.com, we came up with a step by step analysis and plan to jumpstart people in real estate investment with the use of my own experience. That is what you will witness in the rest of this article.
Listed below are the nine (9) steps that will show you how to get started with the realm of real estate investment:
- Specify your financial capacity. Investing in real estate is only one of the vehicles to enhance your finances and improve your pocket. So you have to mull over your financial topography. The majority of the new investors practically want to attain financial independence. You can think of this as the top of the Eiffel tower where all your expenses are simply covered with income from real estate investments. The essentials of climbing the Eiffel tower are similar whether you invest in any type of investment. To reach greater heights in a fast manner, you simply have to boost up your rate of savings. Then, you can be able to divert your assets to your choice of investments, such as real estate.
There are several real estate investment strategies that will aid you with your saving rate. But, at this point, you need to specify where you are on the financial mountain. Are you at the very bottom or are you in the median? Or should we say are you on the top? You want to have an idea of your present condition because depending on where you are, a specific real estate strategy will truly make more sense as compared to others.
- Select a Specific Real Estate Investing Strategy. In this scenario, you could come up with a forty-page business plan that even an MBA would surely be proud of. However, you should not forget that the primary objective is to get started. So let us start with something fast. You can come up with a huge, detailed plan later on.
But for now, just select one real estate strategy that will aid you in moving from your present financial status on to the next one. Beginning with one determinable strategy does not mean you will not have obstructions or even an entire alteration of the route later on. Well, an accident happens and you just have to be adaptable to the situation. But beginning with just one will help you pay close attention. Practically, this will give you the determination and confidence to jumpstart.
- Pick a Target Market. With prices in the ceiling in a lot of communities, people often ask whether they should engage their money on properties close to home or select an entirely new market. Well, it is a good but practical question. Because the market you will select could come up with a huge difference in your final results. It is a wise strategy to invest closer to home, if possible. Since being a local gives you the benefit of deep knowledge of the trends in the market. While it is true that managing a real estate property far from your home is doable, it is still more effective and efficient to be local.
To begin evaluating the market close to home. If prices appear to be a bit high in your neighborhood, you can extend your proximity and explore a little far before looking at other locations. You can drive an hour away. More often, the suburbs of main urban areas become much more reasonable and affordable for investments. Next, is to go for tiny niches within your market. Properties like mobile homes, condominiums, note investing, and tax liens can still be profitable even though they are regarded as a high or high-end market.
But whether you invest far or close to home, you should initially come up with your own market analysis first. It is suggested not to get stuck with this step since the process is dynamic and everybody should keep moving forward to the next step. Well, nobody is perfect and this realm is a world of trial and error.
- Mull over regarding your investment property criteria. Your investment property criteria have a lot to tell in terms of the efficacy of a practical investment. Try creating a written investment profile that you can share with prospective partners, lead source,s and investors like real estate agents.
Your profile should come up with two major categories like target property and target amounts or the figures. The first category was earlier discussed in the preceding step. The next category on your investment profile is actually the “figures”. Such criteria may vary over time but you have to select fundamental investment property criteria that are within your preference. Then, you can shift to the next step.
- Create your Dream Team. Real Estate is like playing basketball. It is a team sport and considers yourself the leader of the team. You do not necessarily need to hire employees, but it is required to put independent contractors and specialists who can aid you in their areas or field of expertise, just like rebykaylee.com. If this idea does not excite you, then, a different class of investment may suit you.
- Consider Financing. Unlike other types of investing, it is but normal to utilize financing as an aid in buying real estate properties. And there are a lot of options to select from. Some notable loans are the FHA, the Veteran Loans, Portfolio loans, Seller financing, and a lot more.
The type of financing you will select is basically dependent on your financial capability, your chosen strategy as well as your personal preference. You surely can depend heavily on your mentors as well as your great team members to aid you in lining up the best loan that fits you and your budget. As soon as you have a concrete plan for your financing, you can move on to the next step.
- Generate cash for your Reservation and Down Payments. Investing in real estate is a business that gives you the freedom to utilize other people’s money to aid you in moving forward. But you should not solely depend on building your business without shelling out of money. Even if you utilize the highest leverage situations, like zero down payment loans, you will still need a case for reserves.
So, the important question is how much amount do you need and what is the manner of raising it? Again, it will depend on the initial steps that we discussed like the strategy, the prices in the market, your property criteria, and the like.
- Come up with a great plan to look for deals. Good deals do not just land in front of you. Looking for excellent deals is like hunting treasure. You have to turn over tons of boulders before you can find the hidden treasure. Except during the years of 2008-2011 which is regarded as the great recession. Back then, the hunt for excellent deals is a bit easy.
- Prioritize your next move by scheduling your time strategically. Real Estate 101 is given to you to help you jumpstart. This process will help you in transferring all of this information into an effective and organized action immediately. You have to have a good schedule of your time and you have to sort out priorities for your next actions.
CONCLUSION. These steps will surely save you frustration and time as individuals getting started with the realm of real estate investment. Studies have shown that too much information at hand may surely give you a prototype to get a jumpstart immediately. And if you continuously move, you can stay away from being overwhelmed and move past those other pesky rookie obstructions like analysis paralysis. Too much thinking will lead you to no clue.
But naturally, these steps are only the start. Reality is dynamic and the most important plans you will make will surely be challenged in the real world. SO you have to stay fluid and versatile.
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